'Incompetence & Neglect' in GM Recall

General Motors did not engage in a cover-up of its infamous ignition switch problem, but it was responsible for massive and widespread incompetence, a new investigation says. "The ignition switch issue was touched by numerous parties at GM -- engineers, investigators, and lawyers -- but no one raised the issues to the highest level of the company," CEO Mary Barra said in discussing the investigation with about 1,000 of its employees this morning.

Anton Valukas, former chief of the US Justice Department's special prosecutions division, headed the investigation, which was commissioned by GM management. It was based on more than 350 interviews with 250 individuals, as well as a review of more than 41 million documents.

GM CEO Mary Barra said that the Valukas report “highlights a company that operated in siloes, with a number of individuals seemingly looking for reasons to not act, instead of finding ways to protect our customers.” (Source: General Motors)

The report was "extremely thorough, brutally tough, and deeply troubling." Investigators found "a pattern of incompetence and neglect," Barra said. "Repeatedly, individuals failed to disclose critical pieces of information that could have changed the lives of those impacted by the faulty ignition switch."

GM fired 15 individuals who were determined to have acted inappropriately. The company has taken disciplinary action against five other employees.

I find it interesting that a report at this level blames individuals, and by implication individuals lower down in the organization: "Repeatedly, individuals failed to disclose critical pieces of information that could have changed the lives of those impacted by the faulty ignition switch."

Individuals, repeatedly = corporate culture issue

Responsibility has to rest with the top management and ultimately the board.

Having worked to top management in a lot of corporations, I gather this is the result to push for short term profits over anything else. Wikipedia cites NPR stating "General Motors was aware of this potential problem, and holding meetings about it, as early as 2005, but decided against fixing it because it would take too long and cost too much money." GM are not alone. This happens in a lot of corporations.

Corporate top management, including the past ones, need to stand up and be counted, and ultimately, prosecuted. They take risks and are paid for it, and there is a downside.

What you are seeing is just one tiny aspect of why GM should have gone through the full bankruptcy process - including breaking it up into smaller units. To paraphrase the oft used political slogan "GM is alive but its customers are dead."

This news story was one of the featured news reports on the latest Google News highlights. EETimes is a wonderful channel to communicate technical information to the public. I guess GM is squeezed between a rock and a hard place: "criminal activity" vs. "incompetence and neglect". Neither one of them are good.